Ahmed FJER
Marketing 300
Prof. Pew
Brand Analysis Project
12.01.2010

Part I: Review of Product Subcategory

The US bleach market shrank by 2.2% in 2008. Two of the main leaders of this market are Clorox and Purex. Clorox experienced a slow decline from 2004 to 2008 as described in figure 1; it is expected to continue to continue declining until 2013.

Figure 1: The Clorox Company: Revenues and Profitability [ 1 ]

The market is composed of large multinationals that operate in a vast number of fast-moving consumer good markets. The threat of new increased competition and product substitutes is very weak because it is first of all difficult to substitute bleach and second the market share is dominated by a select few. In order to analyze the marketing techniques of Clorox and it competitor, it is important to first conduct an environment scan by analyzing the competitive, technological, social, regulatory and technological forces shaping the marketplace.

Although few new entrants will make it the industry subcategory, this is not to say that there is no competition within the industry. In fact, it is very competitive with Clorox occupying 26.1% on the world scale and 67.5% in the US. Other competitors are supermarkets offering generic products. [ 1 ]

Two key social trends dominate the industry: people are becoming more price conscious (switching to private labels) and are more environmentally conscious. The first factor is also a direct result of an economic force. Due to the recession, consumer may opt to purchase cheaper brands or even generic brands. These factors affect the bleach industry in multiple ways: they must ensure their products are up to regulatory norms, are not too expensive and are eco-friendly.

Another economical trend affecting bleach manufacturers is that the ingredients are raw materials, and as a general rule all commodities depend on price fluctuation. This means that production costs are extremely